This excerpt taken from the MRO 8-K filed Oct 27, 2005.
* Reported volumes are based upon sales volumes which may vary from production available for sale primarily as a result of the timing of liftings of certain of Marathons international liquid hydrocarbon volumes.
Marathons third quarter production was slightly under guidance despite the loss of 20,000 boepd shut-in due to the hurricanes in the Gulf of Mexico. Other parts of Marathons business continued to generate production increases, particularly in Equatorial Guinea and Russia. In Equatorial Guinea, Marathon realized the benefits of strong condensate production and the full ramp-up of the recently completed liquefied petroleum gas (LPG) expansion project. During the third quarter, total liquids production available for sale in Equatorial Guinea averaged 45,000 net bpd. In addition, the company continued development activities in the East Kamennoye field in Russia where Marathon has an ongoing drilling program. These activities have driven total Russian production available for sale from an average of 14,000 net bpd during third quarter 2004 to 28,000 net bpd during third quarter 2005.
The cost of storm-related repairs in the Gulf of Mexico is not expected to be significant. Work continues to restore the remaining operated and non-operated production. Current Gulf of Mexico production is more than 90 percent of pre-storm levels. The restart of remaining oil and gas production is primarily dependent upon restoration of production from Marathons royalty interest at the Shell-operated Ursa platform. Despite the negative effects of the hurricanes on third quarter production levels, Marathon estimates 2005 average daily production available for sale to be 340,000 to 350,000 boepd, excluding the impact of any acquisitions or dispositions.
Marathon continued its exploration success with the Astraea and Hebe discoveries on Block 31 offshore Angola. Marathon has also participated in an appraisal well on the Gengibre discovery on Angola Block 32, and results of this well will be released upon partner and government approvals. Marathons continued success offshore Angola has underscored the significant resource potential of this region. Marathon holds a non-operated 10 percent interest in Block 31 and a non-operated 30 percent interest in Block 32.
In other activity, Marathon is currently participating in an appraisal well on the Plutao discovery on Angola Block 31, an exploration well on the Mostarda Prospect on Angola Block 32, a deep shelf exploration well on the Aquarius prospect (South Pass 86 block) in the Gulf of Mexico, an exploration well on the Davan prospect in the United Kingdom, and an appraisal well on the Gudrun discovery offshore Norway.